KSH International IPO opens tomorrow: Should you subscribe?
What's the story
KSH International, a leading manufacturer of winding wires, will launch its initial public offering (IPO) tomorrow. The issue will remain open for subscription till December 18. The company has set the price band for the IPO at ₹365-384 per equity share with a face value of ₹5 each. At the upper end of this range, KSH International will have a post-listing market capitalization of ₹2,602 crore.
Market analysis
Brokerage views on KSH International's IPO
SBI Securities has given a 'Neutral' rating to the issue, preferring to watch the company's performance post-listing. At the upper price band, SBI Securities said that the IPO is valued at FY25 P/E and EV/EBITDA multiples of 38.3x and 20.7x, respectively, based on post-issue capital. Angel One has recommended a 'Subscribe' rating for medium to long-term investors due to strong earnings growth and improving return ratios among other factors.
Issue details
KSH International's IPO structure and pre-IPO placement
The IPO comprises a fresh issue of ₹420 crore and an offer for sale (OFS) of up to ₹325 crore by promoters Kushal Subbayya Hegde, Pushpa Hegde, Rajesh Hegde, and Rohit Hegde. Ahead of the issue, KSH International raised around ₹35 crore through a pre-IPO placement. The company allotted 9.11 lakh equity shares at ₹384 per share in a private placement.
Subscription information
Investment details for KSH International's IPO
Retail investors can apply for a minimum of one lot comprising 39 shares, which would require an investment of ₹14,976 at the upper end of the price band. For small HNIs, the minimum application size is 546 shares or ₹2,09,664 while big HNIs will have to apply for at least 2,613 shares or a minimum investment of ₹10 lakh.
Company profile
KSH International's background and future prospects
Founded in 1981, KSH International is one of India's largest manufacturers of magnet winding wires. The company started its operations from a manufacturing facility in Taloja, Raigad, Maharashtra. It has diversified its product portfolio to include a variety of standard and specialized magnet winding wires tailored to customer specifications. A CARE report predicts that by FY25, KSH International will become India's largest exporter in this segment by export revenue.